Hard to see where the bottom is because much of the share price is linked to the tin price. However, if at the end of the quarter we have $130m cash plus CYM convertible notes, plus NC1 shares and options that puts us at around $200m which should be the absolute floor. MLX also has significant tax losses and the Rentails project which should be very valuable with good tin prices.
Area 5 kicks in shortly and the majority of capital spending should be complete at the end of the quarter.
As long as we churn out decent tax free profits we are a bargain at $250m market cap now. at $200m it's a no brainer with the market cap covered by assets. If the tin price gets hammered down then that's the only real danger apart from operational performance.
If the markets take a big tumble then likely MLX follows, but if profits are unchanged then it just makes the company an even better value proposition.
I think most agree here that some sort of capital initiatives such as dividends or buybacks would be the best option to either reward shareholders or increase the share price.
MLX Price at posting:
27.8¢ Sentiment: Buy Disclosure: Held
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